Administrative-Report-1912_Part_001

ADMINISTRATIVE REPORTS FOR THE YEAR 1911. TABLE OF CONTENTS: REPORT ON THE BLUE BOOK FOR 1911. I. GENERAL ADMINISTRATION. Appendix A.-Financial Returns. "" : 11 3 99 " "1 : " " A (1).-Finances. B.-Assessment. C.-Registrar General's Department. D.-Harbour Office. E. Observatory. II.-LAW AND ORDER. F.-Supreme Court. G.-Police Magistrates' Court. H.-Land Office. I.-New Territories. J.-Police and Fire Brigade. K.-Prison. III.-PUBLIC HEALTH. L.-Medical and Sanitary. M.-Botanical and Forestry. IV.-EDUCATION. N.-Education. V.- DEFENCE. ().—Volunteer Corps. VI.—PUBLIC WORKS. P.-Public Works. VII.-UNDERTAKINGS OF GOVERNMENT. Q.-Post Office. R.-Railway. Not published. HONGKONG. REPORT ON THE BLUE BOOK FOR 1911. COLONIAL SECRETARY'S OFFICE, HONGKONG, 22nd June, 1912. SIR, I have the honour to submit for Your Excellency's information the following general report on the Blue Book for the year 1911 :— I.-FINANCES. As the subject of the finances of the Colony for the year under review has been exhaustively dealt with in the Colonial Treasurer's report, which appears for the first time in the history of the Colony. it will be sufficient here to note that in 1911 the revenue amounted to $7,497,231, exceeding the estimate by $410,848, while the expenditure amounted to $7,077,177, or $308,143 less than the estimate. Thus the balance for the year's working was $420,05 1, bringing the balance of assets and liabilities up to $1,826,979 in the Colony's favour. The total capital expenditure on the British Section of the Kow- loon-Canton Railway amounted on the 31st. December, 1910, to a sum of $11,884,427.76, and a further sum of $137,075.01 was added to the capital expenditure during 1911, making a total expenditure of $12,021,502.77 down to the end of last year. Additional expendi- ture will be necessary during 1912 for the construction of a terminal station and for the resumption of land on which to build it. The payments made up to the end of 1911 have more than exhausted the existing Railway Loan, and it is probable, therefore, that in 1912 a further loan will have to be raised. The amount of the Consolidated Loan (Inscribed Stock Loans of 1893 and 1906) stands at £1,485,732 and in addition at the end of the year the advances by the Crown Agents for Railway Construc- tion amounted to £340,000. Against these items, however, should be placed the sum at credit of the Sinking Fund, vis., £118,267, and the sum of £440,000, being the unpaid balance of the loan to the late Viceroy at Wuchang. The Defence Contribution paid during 1911 was $1,342,554. } IL-TRADE AND SHIPPING, INDUSTRIES, FISHERIES, AGRICULTURE AND LAND. (a.)-SHIPPING and Trade. The total of the shipping entering and clearing at ports in the Colony during the year 1911 amounted to 543,570 vessels of 36,179,153 tons, which, compared with figures for 1910, shows a decrease in numbers of 3,594 vessels, with a decrease of 355,209 tons. Of the above, 44,978 vessels of 23,063,108 tons were engaged in foreign trade, as against 40,714 of 23,160,256 tons in 1910, and were distributed as follows:- 1911. 鄒 1911. 1910. 1910. Numbers. Numbers. Tonnage. Tonnage. British Ocean-going ships represented,... 87% 10.5% 32.9% 35·0% Foreign Ocean-going ships represented,... 9.3 10.6 34.3 35:0 British River-Steam- ers represented,.... 15:3 16.0 17.8 17.3 Foreign River-Steam- ers represented,................ 3.1 3.3 3.2 3:0 Steamships (not ex- ceeding 60 tons) represented, 7.2 7-7 0.6 O'G Trading Junks re- presented, 56.4 51.9 11.2 9.1 100.0 100·0 100'0 100.0 The movements of fishing junks are not included in the above figures. Of ships of European construction, 4,042 ocean steamers, 7 sailing ships, 4,147 river-steamers, and 1,617 steamships not exceeding 60 tons entered during the year, giving a daily average entry of 269 ships, as compared with 267 in 1910 and 25'6 in 1909. The average tonnage of individual ocean vessels entering the port has once more increased-from 2,457 3 tons to 2,495 1 tons. That of British ships has increased (2,633.5 tons as against 2,594 5 tons) while that of foreign ships has increased from 2,3241 tons to 2,365 7 tons. During the past 20 years, the average tonnage of ocean vessels has increased from 1,181 1 to 1,915 5 tons. The average tonnage of river-steamers entered during the year has again decreased, from 6021 tons to 5849 tons. That of Brisish river-steamers has further decreased from 617 tons to 599 tons and that of foreign river-steamers from 529 tons to 518 tons. 3 A comparison between the years 1910 and 1911 is given in the following Table :- 1910. 1911. Increase. 1 . Decrease. Class of Vessel. No. Tonnage. No. Tonnage. No. Ton- nage. No. Ton- nage. British Ocean going, Foreign Ocean going, British River Steamers, Foreign River Steamers, Steamships un- der 60 tons 4,262 8,111,946 3,907 7,589,995 | 355.521,951 4,312 8,103,969 4,180. 7,917,640 132 186,329 i 6,483 4,000,073 6,871 4,116,736 388116,663. 1,334 706,616 1,423 736,057 89: 29,411 (Foreign 3,153 136,765 3,263! 130,092 110- +6,673 Trade),. Junks, Foreign 21,170 2,100,887 Trade, 25,334 || 2,572,588 4,164 471,701 Total, Foreign I Trade, 40,714 23,160,256 41,978 23,063,108 4.751 617,805 487 714,953 Steam-launches plying in 466,014: 10,986,234 461,984 10,981,990 waters of the ! 1,030 $4,224 Colony, | Junks, Local Trade, || *40,436 · *2,387,871 †36,608, +2,134,054 3,828 253,817 Grand Total, 547,164 | 36,534,361 | 543,570 36,179,152 4,751 617,805 8,345 973,014 Net, 3,591 355,209 * Including 21,056 Conservancy and Dust Boats of 1,540,984 tons. + }; 31 ** 13,980 818,292 Decrease owing to a number of smaller sized launches being employed. Small decrease in tonnage owing to larger sized launches being employed. This Table shows a decrease in British ocean shipping of,355 ships of 521,951 tons, or of 83% in numbers, and of 6;4% in tonnage. British river-steamers have increased from 6,483 ships of 4,000,073 tons to 6,871 ships of 4,116,736 tons or 2.3% in ships and 2.9% in tonnage. This is explained by the new steamer Wing Ôn con- tributing 295 trips, also to the increased number of trips made by the Canton steamers, particularly at the time of the unrest in Canton. Foreign ocean vessels have decreased by 132 ships or 3% in numbers and 2:3% in tonnage. This result is due to increases of 66, 47, 26, 20, 15 and 4 ships under United States, Dutch, Portuguese, Russian, French and Japanese flags respectively, which are counterbalanced by decreases of 141, 121, 27, 18, 2 and 1 ships. under German, Chinese, Swedish, Norwegian, Italian and Danish flags respectively. The increase shown under the United States flag is explained by the steamers Rubi and Zafiro being transferred from British colours, and the increase shown under the Dutch flag is explained by the fact that four steamers which called at this Port in 1911 did not call in 1910. The decrease under the German flag is chiefly accounted for by the falling off in trade from Bangkok; while the decrease under the Chinese flag is due to the loss of the Meefoo and to the stoppage of two steamers which previously traded to this Port. Foreign river-steamers have increased by 89 ships (or 6·6%) of 29,441 tons (or 41%). This is mainly accounted for by the new steamers Shing Ping and Licorne contributing 72 trips, and to an increase in trips of vessels under the Portuguese flag. As in former years, a comparison is inserted between the shipping of the port twenty years ago, and to-day. In 1891, 2,856 British ships of 3,593,223 net register tons entered the port, against 10,778 ships of 11,706,731 net register tons in 1911: an increase of 277.3% in numbers and of 223 % in tonnage. These figures include ocean and river-steamers and ocean-going sailing ships (not junks). Similarly, foreign shipping, during the same period, has increased from 1,495 ships of 1,545,404 net register tons in 1891, to 5,603 ships of 8,653,697 net register tons; an increase of 2757 % in numbers and of 459.9 % in tonnage. The actual number of individual ocean vessels of European type of construction entering during 1911 was 720, being 348 British and 372 foreign. The corresponding figures for 1910 were 734, 365 and 369 respectively. These 720 ships aggregated 1,796,498 tons. They entered 4,049 times, giving a collective tonnage of 7,756,033 tons. Thus, as shown in the following table. in 1911 as compared with 1910, 14 less ships with a tonnage decreased by 8,177 tons, entered 235 less times, and gave a collective tonnage less by 356,952 tons. Steamers No. of Times entered. Total Tonnage. Flag. 1910. 1911. 1910. 1911. 1910 1911. British Steamers 360 344 2.124 1,952 4,041,557 " Sailing 5 4 7 6 17,663 3,781,622 16,534 German 113 111 722 657 1,206,757 1,133,786 Japanese Steamer 101 106 507 509 1,341,083 1,354,362 " Sailing. 1 1 138 Norwegian. 34 36 223 210 236,334 221,039 Austrian 24 24 95,062 96,380 Chinese 22 20 250 192 314,879 241,362 Danish. 6 8 20 20 33,165 45,928 Dutch 16 16 108 130 214,737 235,881 French.. 35 27 144 152 262,670 242,469 Italian 2 13 12 34,496 31,188 Portuguese 66 79 29,478 32,842 Russian 11 10 20 28,803 53,080 Swedish 27 14 45,398 I 25,778 U.S.A. Steamers.. 15 18 37 71 210,466 ¦ 59 Sailing... 1 Ι 243,619 163 No Flag 1 209 734 720 4,284 4,049 8,112,985 7,756,033 5 TRADE. As pointed out in previous reports, the figures which used to appear under this heading were misleading, being inaccurate in some cases. However, in the few items of import trade of which substantially accurate details can be given, the following remarks may be of interest : Coal.-1,046,290 tons were imported during the year. This quantity, compared with the imports for 1910, shows a decrease of 68,830 tons or 6·6%. This decrease may be ascribed to greater quantities of coal (principally Japanese, North China and Hongar) passing through Hongkong direct to Canton than heretofore, also to the falling off in ocean tonnage. Of the many varieties of coal imported, Japanese heads the list. Next come North China and Hongay. The importation from Pulo Laut is increasing. There was only one cargo of Cardiff coal commercially imported. No Australian coal was discharged throughout the year. Kerosene Oil shows a big increase in bulk oil of 62,367 tons or 1111% and in case oil an increase of 4,112 tons or 88%, while liquid fuel has increased by 7,759 tons or 82.3%. The huge increase in bulk oil can be attributed to a great extent to the cutting of rates between the Standard Oil and Asiatic Petroleum Companies. also to the fact that stocks were left short in 1910, and that much oil hitherto shipped direct to coast ports was last year trans-shipped in Hongkong, because the revolution in China caused a restriction of sales in the interior. The increase in liquid fuel tends to show that this class of fuel is now becoming popular in steamers which hitherto exclusively consumed coal. Opium. The imports of raw opium show a decrease of 10,457 chests or 32·9% as compared with a decrease of 111% in 1910 and 14-5% in 1909. The experts show a decrease of 8,272 chests or 29.2% as compared with a decrease of 212% in 1910 and 9·7% in 1909. During the last four years the raw opium trade of the Colony is described by the following figures : Stock in hand, 1st Jan., Imported during the year, Boiled by Opium Farmer,...... 1911. 1910. 1909. Chests. Chests. Chests. 7,123 4,509 5,808 21,286 31,743 35,734 1908. Chests. 4,707 41,821 Total, 28,409 36,252 41,542 46,528 761 782 1,044 864 Spurious Opium destroyed, 14 Exported during the year, 20,061 28,333 51 35,938 247 39,609 Total,... 20,802 29,129 37,033 40,720 Stock remaining on 31st Dec., 7,587 7,123 4,509 5,808 Of the several varieties of opium imported, Malwa decreased by 454 chests or 92%, Patna by 6,443 or 397%, Benares by 1,249 or 19.3%, Persian by 1,090 or 27·6%. Of the several varieties of opium exported, Malwa decreased by 2,000 chests or 43'5%, Patna by 4,196 or 29-7%, Benares by 926 or 14.9 %. The export of Persian opium increased by 56 chests or 2.5%. The trade in compounds of opium shows a decrease, the imports being 38.8% less than in 1910 and the exports 14.5% less. In morphine there is also a decrease of 39% in the imports and 19 ̊5% in the exports. The figures for cocaine show a considerable increase, the imports being 451 lbs. as compared with 145 lbs. in 1910, and the exports being 445 lbs. as compared with 201 lbs. in 1910. During the latter half of the year, however, there has been very little trade in either morphine or cocaine owing to further restrictions placed on the import of these drugs at the various ports in China and the neighbouring countries. Sugar-The imports of sugar show a decrease 42,076 tons or 16.7%. Cotton and Cotton Yarn.-Here is shown a large decrease amount- ing to 34,730 tons or 87.5% chiefly due to high prices ruling for cotton during the year, which made it prohibitive to the poorer Chinese and so checked business. The last two or three months of the year were particularly bad for business owing to the Revolution. Flour. Our returns show a great increase of 49,679 tons or 153.8% due to the poor rice and wheat crops in China throughout the year. Districts, which were supplied last year from the abundant crops of China, have this year been compelled to fall back on the American products. The price of rice has also enhanced the demand for American flour, this being used as a substitute for rice and rice- flour. The prices of rice throughout the year have practically stood at about 40% over normal prices, and possibly the high prices of flour in Australia have to some extent inflated our imports of flour - here, inasmuch as such high prices have curtailed that country's shipments to ports south of Hongkong which are large consumers (Java, Straits, Burmah, &c.), and the southern ports have come to us for their supplies. Hongkong is the distributing centre of American flour for those ports. Rice. Here our returns show a falling off of 152,224 tons or 26·6%. The failure of the southern crops in general, as evidenced by the high prices which have ruled on the markets for the last half year, has, of course, been the reason of the decline. Summary.-The total reported imports during the year amounted to 3,995,793 tons, as against 4,292,194 tons in 1910, a decrease of 296,401 tons or 74%. Exports show an increase of 71,672 tons, or 31%. Transit cargo shows an increase of 66,109 tons or 16% These figures are not however reliable, there being no means of collecting accurate information in the absence of any Customs Staff. I Emigration and Immigration. 135,565 emigrants left Hongkong for various places during the year 1911, (111,058 in 1910). Of these 92,691 were carried in British ships and 42,874 in foreign ships. These figures show a substantial increase of 24,507 (or 22 %) over 1910, and can be accounted for in the same way as last year, namely, by the demand for labour in the rubber plantations of the Malay States. Statement of Number of Emigrants to Straits Settlements 1907 to 1911 compared with Total Chinese Emigration 1907 to 1911. No. of Emigrants 1907, 1908, 1909, 1910, 1911, Total No. of to Straits Settlements. Emigrants, 83,048 105,967 49,639 71,081 48,016 77,430 76,705 111,058 100,906 135,565 149,894 returning emigrants are reported to have been brought to Hongkong from the several places to which they had emigrated, either from this Colony or from coast ports, as against 149,564 in 1910. Of these 112,328 arrived in British ships, and 37,566 in foreign ships. (b.) INDUSTRIES. (i.)-Under European Management. Engineering and Shipbuilding. This industry has improved during the year under review. Taikoo Dockyard and Eng. Co., Ld., . Hongkong & Whampoa Dock Co., Ld., W. S. Bailey & Co., . Macdonald & Co.... Ulderup & Schluter, 1911. 9 vessels of 2,281 gross tons and 3,650 I.H.P. 13 8 " 552 206 50 408 ני 30 1 "3 " 703 413 3+ " 173 11 + Tung Hing Lung, 55 Kwong Tak Hing, 1 210 11 W. C. Jack & Co., 3 " Kwong Hip Lung Co., Ld., 45 76 860 250- 192 48 15 01 1 31 320 29 "J Total. Taikoo Dockyard and Eng., Co., Ld., Hongkong & Whampos Dock Co., Ld., W. S. Bailey & Co., Macdonald & Co., . Ulderup and Schluter, Total,. 73 vessels of 3,883 gross tons and 6,609 I.H.P. 1910. 8 vessels of 2,231 gross tons and 1,718 1.H.P. 14 J 4 >> לי 715 121 169 317 " " "" " 2,070 200 160 33 150 13 "1 31 veseels of 3,553 gross tons and 4,208 I H.P. Sugar Refinery-Various circumstances combined to cause the year 1911 to be an unfavourable one for this industry. In the early part of the year the world's prices assumed a strong downward tendency due to heavy crops being anticipated in the main sugar producing centres. This affected prices unprofitably in Hongkong and the East. Later a reaction in prices took place due to shortness in the European beet crops, and values mounted up here in common with other parts of the world, but the more prosperous results, which these circumstances placed within the reach of the Hongkong refin- eries, were nullified by the outbreak of the Revolution, which reduced local demand to a minimum. Cotton Spinning.-Owing to the high prices required for cotton during the early part of last year, it was impossible to work at a profit and one mill was closed for nine months. Towards the end of the year the Revolution in China dislocated business and the outlook is still unsatisfactory. Rope Manufacturing.-There is very little requiring special com- ment, and the trade for the year has gone on without any distinguish- ing feature. The power of absorption of the local and adjacent markets seems to vary very little. The price of hemp has been fairly steady throughout the year, the extreme fluctuation not exceed- ing $3 per picul in Manila. Cement.-There has been a fair demand throughout the year. Brewing. The Oriental Brewery, of which hopes of success were confidently expressed in 1910, was unfortunately unable to compete with other breweries and has passed into liquidation. (ii.)-Under Chinese Management. Rattan and Fibre Furniture.-Business showed a slight falling off. There are forty-one firms, large and small, in the trade. Native Tobacco. There are twenty-six factories in existence. Business is still unsatisfactory owing to the competition in China of foreign tobacco corporations and the sale of foreign cigarettes. The local tobacco crops were fairly good. Tinned Goods.-This business increased moderately, and con- siderable exports have been made to Annam and Singapore. Samshu.-The local manufacturers of native spirits report hav- ing had a good year. The total local output of all kinds of native spirits (including the New Territories) was nearly 1,100,000 gallons, as against 800,000 gallons in 1910. This increase is due to a decrease in import from China consequent on the recent unrest. Vinegar. All the large native distilleries produce vinegar as well as Samshu. The yearly output of the seven largest firms amounted to some 850,000 gallons. The figures given for 1910 (two million gallons) were probably wrong. Knitted Vests and Socks.-There are five factories in existence. A large local demand, which has lately still further increased, exists for these articles. Leather. There are eight local tanneries. The high price of hides affected the business adversely, and the volume of trade fell off by about 10%. Ginger and Preserves.-The volume of business done still showed a decrease and was affected by the price of sugar. There are fourteen factories in the Colony. Soy. There is no improvement to report in this trade which remains dull. Paper. The trade still shows satisfactory progress. Vermilion. The volume of this trade has again fallen off and at the end of the year the demand for this commodity was almost non-existent. Lard.-Much of the lard manufactured in the Colony is exported to the Philippines, where regulations require the purity of animal products to be certified. The local manufacturers of lard made from animals killed in the Colony willingly comply with the regulations. The output still increases. During 1911 a lard and meat factory was started purely in the interests of the Philippine trade. + (c.) FISHERIES. A considerable proportion of the boat population of Hongkong supports itself by deep-sea fishing, in which pursuit a large number of junks are engaged. The villages of Aberdeen, Stanley, Shauki- wan, and also many in the New Territories, are largely dependent upon this industry for their prosperity. Since the middle of last year a Steam Trawler has been engaged in fishing over various grounds, and has contributed its hauls to the local markets. Fresh water fish is imported from Canton and the West River. There are oyster beds of considerable value in Deep Bay. (d.) FORESTRY, AGRICULTURE AND BOTANY. The formation of pine-tree plantations in the Harbour Belt be- tween Laichikok and Lyemun has been continued to the extent of about 300 acres, and sites which failed in the area sown in the pre- vious year have been resown. This Belt has now been completed. Mt. Davis and an area of about 70 acres at Aberdeen where pine- trees were felled in 1910 under the timber contract have been resown with pine-tree seeds The areas cleared by fire last year on the slope of Mt. Kellett which descends to Aberdeen have also been resown with pine-tree seeds. On Mt. Gough, where a fire occurred last year, about 1,800 sites have been sown with seeds of broad-leaved trees. 10 Experiments have been made in planting broad-leaved trees and sowing seeds of shrubs on the bare hills on the southern slopes of the Kowloon range of hills. In Hongkong and Kowloon shade trees have been renewed where required, and flowering trees have been planted in suitable places. Altogether 800 trees have been used for these purposes. Trees have been planted alongside the Castle Peak-Shataukok Road to the number of 4,800. At Aberdeen pine-tree felling under the timber contract has been carried out in two blocks. Seventy acres have been felled east of the Paper Mill and one hundred and forty acres west of the Aberdeen New Road. Undergrowth to the extent of about 2,950,000 square feet has been cleared at the cost of the Government, 1,000,000 square feet at the cost of the Military Authorities, and 250,000 square feet at the cost of private individuals in connection with the fight against mosquitoes and malaria. About 300,000 square feet of undergrowth have been cleared for the Public Works Department for the pur- poses of survey. Several kinds of fodder grass have been experimented with, but nothing has been found equal to the Guinea Grass which is so much grown in the Colony. The first and second rice-crops were good. Lichis were a good crop and the railway carried some of the crop to Hongkong. Several samples of vegetable products have been submitted to the Director of Imperial Institute for investigation. His report on the majority of the articles has not yet been received. In a report on tea-seed cake, however, he stated that the article was likely to lead to business, as two firms were satisfied with the price and wished to be put in communication with exporters of the cake. The Key to the Flora of Hongkong, the New Territories and Kwang-tung Province is now in course of publication. The Editor of the Journal of Botany was unable, at the last minute, to accept it for publication, and it is now being published by the Director of the Royal Gardens at Kew, as an additional series of the Kew Bulletin. (e.) LAND GRANTS AND GENERAL VALUE OF Land. The net amount received from sales of Crown Land and pier rights after deducting expenses of sales was $270,005, an increase of $207,319 on the previous year and #149,170 more than the average amount received for the last 5 years. Of this amount $4,741 was received in respect of the sale of various pier sites and extensions to existing picrs, $5,899 was received in respect of sales of land in the New Territories and the remainder from sales of new lots of Crown 11 Land and grants of extensions to existing lots in the island of Hong- kong and Old Kowloon. The chief items were received in respect of the sales of Inland Lots 1892 aud 1901 which realized $34,600 and $80,100 respectively. There has been a considerable increase in the number of build- ing lots in the city sold by the Government during the year, 18 lots having an area of 7 A. 3 R. 35; P. having been sold for a premium of $234,767 as against 6 lots with an area of 1 R. 194 P. and at a premium of $4,776 for the previous year. There has again been a very considerable increase both in number and value of private properties which have changed hands during the year, the purchase moneys having exceeded those of the previous year by over six million dollars. There is a good demand for residental houses on the lower levels and in many instances a considerable rise in prices has been obtained, which may be accounted for by the large number of Chinese gentry who have invested in house property in the Colony during the latter part of the year. There is a considerable demand for good mortgage securties with a tendency to accept a reduced rate of interest. Sales of vacant Crown Lands in the New Territories continue even and consist chiefly of small building sites at prices ranging from 1 to 2 cents a foot and land for purposes of cultivation at from to cents a foot. /III-LEGISLATION. Sixty-five Ordinances were passed during 1911, of which 41 were amendments to other Ordinances, and 5 were connected with the revision of the Ordinances of Hongkong now being carried out by the Chief Justice (Sir F. T. Piggott, Kt.). This is the largest number of Ordinances ever passed by the Hongkong Legislative Council in one year. The most important Ordinances were :-The Defence (Sketching Prevention) Ordinance (No. 3), the Consolidation of the Liquor Laws (No. 9), the University Ordinance (No. 10), the Stamp Duties Management Ordinance (No. 35), the Code of Civil Procedure Amendment (No. 36), the Societies Ordinance (No. 47), the Chinese Partnerships Ordinance (No. 53) and the law relating to Companies (No. 58). IV.-EDUCATION. There are 67 Government and Grant Schools, the most important of which is Queen's College. Of these 20 are Upper Grade Schools with a staff competent to give instruction in all subjects of the 7th Standard and above. These latter schools have an average attend- ance of 4,107, and the medium of instruction in all of them, with the exception of four girls' schools, is English. The 47 remaining schools are all Lower Grade. They comprise one school for British Indians, where English and Urdu are taught, six Government Schools = 12 and 40 Grant Vernacular Schools. The average attendance at all these Lower Grade Schools is 2.196. at both grades of school, is 6,303. The total average attendance, The revenue derived from school fees was $76,056.25 (of which $40,435 was from Queen's College). Two schools are limited to children of British parentage. Both these schools (one for boys, the other for girls) are under the Govern- ment. In 1911 the combined average attendance at them was 76. Higher education is represented by the Technical Institute, where instruction is given in the evening in Mathematics, Machine Drawing, Building Construction, Field Surveying and allied sub- jects; in Chemistry and Physics; in the English and French languages, Book-keeping and Shorthand. There is also a Teachers' Class, at which the junior Chinese masters of Government and Grant Schools are expected to attend. A Kindergarten Class has also been started for teachers in Girls' Schools. The Institute is furnished with a well equipped laboratory. The lecturers are chiefly Civil Servants recruited from the European staffs of Queen's College and the Public Works Department. These officers receive fees for their services. The Hongkong University building, the gift of Sir Hormusjee Mody, was almost completed at the end of the year and was opened in March, 1912. It is expected to be open for teaching in the autumn of this year. The first chairs will be those of Medicine, Engineering and Arts. On 31st December, 1911, the Endowment Fund amounted to $839,970.11 in Hongkong currency and a sum £40,098 7s. 3d. in sterling. V.-PUBLIC WORKS. Of the important works in progress, the Post Office was com- pleted by the middle of the year and the following departments were accommodated on three floors of the building :-Post Office, Treasury, Registrar General's Department, Sanitary Department, Education Department, the District Office for the South of the New Territories and the Audit Department. The extensive basement was partly utilized for postal purposes and partly for the storage of materials required by the Sanitary Department. A fourth floor, which is intended to provide for future expansion, remains unoccupied ; but it has been decided to let it for offices in the meanwhile. Law Courts were practically completed. Substantial progress was made with the Mongkoktsui Breakwater, but all the work executed was invisible, being below low water level. A contract for the reconstruction of the old Western Market was let in September, and fair progress with the foundations had been made by the close of the year. The The following buildings were completed :-Kowloon Market; Additions to No. 2 Police Station; Staff Quarters, Kennedy Town - Hospital; Police Station, Ts'ün Wan; Reconstruction of Government Pavilions; Hospital at the Quarantine Station, Lai Chi Kok; Work- 13 shops and Sheds for Ambulances at the City Disinfecting Station ; Coal Shed, Tai Po; Latrines in Mee Lun Lane and Rutter Street and a Trough Closet in Queen's Road West under the ramp leading to the Government Civil Hospital. The following building-works were in erection :-Sanitary Office in Wantsai District; Additional Storey and Extensions, Yaumati English School; Market and Slaughter House, Aberdeen; Stables, Yaumati Disinfecting Station; Quarters for Searchers, Imports & Exports Oflice; Lighthouse and Quarters, Kap Sing Island; an extension of the Maternity Hospital and the Reconstruction of Coolie Quarters at the City Slaughter Houses to admit of the provision of further accommodation for slaughtering pigs. A The diversion of Wongneichoug Road past Iuland Lot 1698 was completed and extended northwards to join the permanent align- ment of that section of the road which had previously been formed. The area formerly occupied by No. 2 Tank was filled in. A path from Bowen Road to May Road, bifurcating towards the latter road, was completed and paths from Boundary Path to Keundey Road and from Chamberlain Road to Plantation Road were in progress. diversion of Bonham Road to admit of an extension of Inland Lot 754 was also in progress, the necessary works being executed at the expense of the lessees of the lot mentioned. A road to the site of a proposed Japanese Crematorium in Sookunpoo Valley was completed. In the New Territories, the sections of road extending from Ping Shan to Au Tau and from San Tin to Au Ha Gap were completed. As it was decided to utilize the last-named section for a light railway, to extend from Fan Ling Railway Station to Sha Tau Kok, the neces- sary extension of the road to the latter place was abandoned, a track for the light railway taking its place. The construction of this track and the laying of the light railway were carried out by the Railway Administration. A pier was constructed in Castle Peak Bay and connected with the road to Ping Shan and Au Tau. • The training of some of the nullahs between Bowen Road and Magazine Gap to the eastward of the Military Hospital was completed, and a considerable amount of such work was executed to the south of Magazine (ap in the valley below the Military Sanitarium, the Military Authorities sharing the cost of the latter work. A consider- able length of the nullah at No. 12 Bridge, Shaukiwan, was also trained and the stream past Pokfulam Village was channelled and otherwise improved. In Kowloon, an extension of the nullah in Waterloo Road to the north of No. 4 Railway Bridge was carried out. Underground tanks were constructed af the junction of Arbuthnot Road and Wyndham Street and in Stone Nullah Lano for the purpose of flushing the low-level sewers, the necessary con- nections with the sewerage system being made. The laying of a sewer in Craigmin Road to intercept the drainage from houses on the southern slopes of Mount Gough, &c., was undertaken and con- nestions with a number of the houses were carried out. Extensive drainage works were also executed in Shaukiwan West and Sham- shuipo. Page 15Page 16 14 The reclamations at the end of Gillies Avenue, Hunghom, and for the market and slaughter house at Aberdeen were completed; the reconstruction and raising of Tai Hang Village was continued; similar work of a more extensive nature at Ap Liu Viilage, near Shamshuipo, was undertaken and the reclamation of the area in front of Kowloon Marine Lots 29 to 31, at Yaumati, was begun. 1 The work of providing scavenging lanes was continued, com- pensation being paid where necessary. The Tytan East or Mount Parker Catchwater was extensively repaired or reconstructed, and a considerable extension of the Shau- kiwan Water Works, for the purpose of augmenting the supply to that village, was undertaken. An 8" water main was substituted for the 3" and 4" previously existing from Percival Street to the Asiatic Petroleum Company's Works (Marine Lot 277). Extensive illuminations of the principal public buildings were carried out on the occasion of the Coronation of His Majesty King George V. The total amount expended on Public Works Extraordinary was $1,094,817.93 and on works annually recurrent $486,940.80. Several typhoons of considerable severity occurred, one of these, which occurred in August, being accompanied by a severe rainstorm, 151 inches of rain falling in two days and causing considerable dam- age to roads, retaining walls, &c. Railway. Little construction work was carried out during 1911 with the exception of building the workshops, erecting machinery and pitch- ing the slopes of No. 1 Cutting. Nothing was done towards the building of the terminal station at Kowloon, but negotiations were carried on for the acquisition of the necessary land and it is anticipat- ed that the work will be put in hand at an early date. A two-foot gauge branch line from Fan Ling to Sha Tau Kok, a distance of 74 miles, was commenced in May 1911 and three sections were opened for traffic on 21st December. The fourth and last section had not been opened at the end of the year. In October last through traffic between Hongkong and Canton was established but, owing to the disturbances in Chinese Territory, traffic on the Chinese section was suspended at the request of the late Viceroy on November 7th and was not resumed until the 14th of December. Thereafter the traffic to the end of the year was below normal. The local traffic was steady during the year and receipts were more than was anticipated. Passengers carried between 5th October and 31st December are as follows: British Section to China, China to Hongkong and Kowloon, .29,338. .27,653. 15 VI.-GOVERNMENT AND AIDED INSTITUTIONS (a.) HOSPITALS. Government Hospitals consist of the Civil Hospital, to which is attached an isolated Maternity Hospital, the Victoria Hospital for Women and Children, and the Kennedy Town Infectious Diseases Hospital. There is an Observation Station capable of accommodating 1,500 persons in the event of an outbreak of infectious disease on board a ship arriving in the Harbour. The Civil Hospital contains 150 beds in 19 wards. 2,370 in- patients and 15,489 out-patients were treated during 1911 as against 2,644 and 17,759 respectively in 1910. 112 cases of malarial fever were admitted as against 340 in 1910 al 188 in 1909. The Maternity Hospital contains 6 beds for Europeans and 4 for Asiatics. 138 confinements occurred during the year as against 107 in 1910. The Victoria Hospital at the Peak contains 41 beds, and during 1911 309 patients were under treatment there. At Kennedy Town- Hospital, which contains 26 beds, 22 cases were treated in 1911, 21 being small-pox. (b.) LUNATIC ASYLUM. The Asylum is under the direction of the Superintendent of the Civil Hospital. European and Chinese patients are separated, the European portion containing 8 beds in separate wards and the Chinese portion 16 beds.. 220 patients of all races were treated during 1911 and there were 14 deaths. (c.) THE TUNG WA AND OTHER CHINESE HOSPITALS. The Tung Wa Hospital, opened in 1872, is mainly supported by the voluntary subscriptions of Chinese, but receives an annual grant of $8,000 from the Government. Only Chinese are treated in this institution. Various other services not appertaining to a hospital are performed by the institution, such as the free burial of the poor, the repatriation of destitutes, and the organisation of charitable relief in emergencies. Chinese as well as European methods of treatment are employed in accordance with the wishes expressed by the patients or their friends. About half the number are now treated by Western methods. The bospital is managed by a committee of Chinese gentlemen annually elected, their appointment being sub- mitted to the Governor for confirmation. It is under the supervision of a visiting physician, who is a member of the Medical Department, whilst a Chinese house surgeon, trained in Western medicine, is a member of the hospital staff. There are 323 beds in the buildings and 3,649 patients were accommodated during 1911. The Alice Meniorial and Affiliated Hospitals are managed and controlled by the missionaries resident in Hongkong, agents of the London Missionary Society, and consist of the Alice Memorial Hospital opened in 1887, the Nethersole Hospital opened in 1893, the Alice Memorial Maternity Hospital opened in 1904 and the Ho Miu Ling Hospital opened in 1906. The number of in-patients in 1911 16 was 1,399 and the expenditure $16,600. The number of labours in the Maternity Hospital was 249. The Government makes a grant of $300 per annum to these Hospitals. To avoid the complete seclusion from friends and relatives, which removal of Chinese plague patients to the Kennedy Town Infec- tious Diseases Hospital entailed, four District Plague Hospitals are now maintained by the Chinese in various parts of the Colony. These hospitals are under the management of the Chinese Public Dispensaries Committee and receive a grant of $2,000 a year from the Government. The new Kwong Wa Hospital for Chinese in the Kowloon Peninsula was opened on the 9th October. It occupies a site having an area of 3 acres and as designed will ultimately provide accom- modation for 210 patients. The existing buildings contain 70 beds and 169 patients were accommodated during 1911. The collection of subscriptions and the supervision of the building were under- taken by a special committee under the chairmanship of the Registrar General, but when completed the hospital will form part of the Tung Wa Hospital and be under the same management. The hospital will receive a grant of $8,500 per annum from the Govern- ment. VII.-INSTITUTIONS NOT SUPPORTED BY GOVERNMENT. Among institutions recognised and encouraged, but not to any considerable extent supported, by Government may be mentioned the Pó Leung Kuk, the Eyre Refuge, the Hongkong College of Medicine, the City Hall, and the Chinese Public Dispensaries. The Pó Leung Kuk is a Chinese Society founded in 1878 for the suppression of kidnapping and traffic in human beings. It was incorporated in 1893 and is presided over by the Registrar General and not more than nine directors nominated by the Governor. The actual management is entrusted to a committee elected annually by the members of the Society. The Society's buildings have been declared a Refuge under the Women and Girls Protection Ordi- nance, and almost all women and girls detained by the Registrar General under that Ordinance are sent to the Pó Leung Kuk. During 1911 the number of persons admitted was 514, and at the close of the year 72 remained under the care of the Society. The inmates are under the immediate charge of a Chinese matron, and instruction is given them by the matron and a Chinese teacher in elementary subjects and in needlework. The Eyre Diocesan Refuge is an institution, under mission aus- pices, founded for rescue work anong the Chinese. It is now housed in the Belilios Reformatory and receives a small grant from the Government as well as a contribution from the Pó Leung Kuk. The Hongkong College of Medicine was founded in 1887. The government of the College is vested in the Court, of which the Rector of the College, who has always been a Government official, is 17 President. The lecturers, who are Government officials or private medical practitioners, each receive a small honorarium, the funds being derived from the fees of the students, a Government grant-in- aid of $2,500, and certain legacies and bequests. The minimum course of study is five years, and the preliminary examination has been accepted by the General Medical Council of Great Britain. 125 students had been enrolled up to last December, and of these 43 have become qualified licentiates. Most of the licen- tiates have settled in the Colony, and are exerting a most useful influence in the direction of displacing native medical methods and popularising Western medical and sanitary knowledge, while a considerable number are employed as resident surgeons in the hospitals for Chinese and as medical officers in charge of the Public Dispensaries. The work of the College has thus far been carried on in lecture-rooms and laboratories made available in various hospitals, etc., in different parts of the City. When the Hongkong University is open, the College will be merged into its Faculty of Medicine. ment. The City Hall receives an annual grant of $1,200 from Govern- It contains a theatre, some large rooms which are used for balls, meetings, concerts, etc., a museum in which are some very fair specimens, and a large reference and lending library, to which new volumes are added from time to time, as funds will allow. The building was erected in 1866-9 by subscription. Small grants are also given to the Italian Convent ($1,280), the French Convent, (both of which take in and tend abandoned or sick infants), the West Point Orphanage, the Seamen's Hospital, and other charitable institutions. The Chinese Public Dispensaries are institutions maintained in order to provide the Chinese with the services of doctors, whose certificates will be accepted by the Registrar of Deaths, and with the services of interpreters, who can assist the inmates of houses, where a case of infectious disease has occurred. Coolies are engaged and ambulances and dead vans provided in order to remove cases of in- fectious disease to the Infectious Diseases Hospital and dead bodies to the Mortuary. The Dispensaries receive sick infants and send them to one or other of the Convents and arrange for the burial of dead infants. Free advice and medicine are given and patients are attended at their houses. There are eight Dispensaries in existence including one for the boat population on a hulk in Causeway Bay. The total cost of maintenance, which is defrayed by voluntary subscription, was $33,434. The Dispensaries are conducted by committees under the chairmanship of the Registrar General. VIII-CRIMINAL AND POLICE. The total of all cases reported to the Police was 9,289 being a decrease of 500 or 5% as compared with 1910. There was in 1911 a decrease in serious offences of 25 or 069% as compared with the previous year. The number of serious offences reported was 167 over the average of the quinquennial period commencing with the 18 year 1907. The number of minor offences reported shows a decreasc of 475 as compared with 1910, and was 877 below the average of the quinquennial period. The total strength of the Police Force in 1911 was Europeans 134, Indians 399, Chinese 547, making a total of 1,080 (as compared with 1,012 in 1910) exclusive in each case of the five superior officers and staff of clerks and coolies. These figures include police paid for by the railway and other government departments, and by private firms. Of this force 13 Europeans, 92 Indians and 47 Chinese were stationed in the New Territories during the year, under the District Officer. The District Watchmen Force, numbering 124, to which the Government contributes $2,000 per annum, was well supported by the Chinese during the year. These watchmen patrol the streets in the Chinese quarter of the City. They are placed on police beats and are supervised by the European police on section patrol. The total number of persons committed to Victoria Gaol was 4,178 as compared with 4,867 in 1910. Of these 1,191 were com- mitted for criminal offences, against 1,212 in 1910. Of committals for non-criminal offences there were 9 less under the Prepared Opium Ordinance, and 13 less for infringement of Sanitary Bye-laws, than in 1910. The daily average of prisoners confined in the Gaol was 595, the average for 1910 being 547, and the highest previous average being 726 in 1904. The percentage of prisoners to population, according to the daily average of the former and the estimated number of the latter, was 014, which is the average percentage for the last ten years. Owing, however, to the large floating population, which is constantly moving between the Colony and Canton. the percentage of crime to population does not convey an accurate idea of the comparative criminality of the residents of the Colony. The Goal has accom- modation for 590 prisoners. The prison discipline was satisfactory, the average of punish- ments per prisoner being 161 as compared with 133 in 1910 and 1:38 in 1909. Long sentence prisoners serving two years and upwards are taught useful trades, including printing, book-binding, washing, mat-making, tailoring, oakum-picking, etc. The profit on the work done was $51,833 as against $48,902 in 1910. There was $4,627 received and credited to Government for non-Government work against $4,253 in 1910. IX.-VITAL STATISTICS. (a.) POPULATION. The civil population of the Colony, according to the Census taken on May 20th, 1911, was 456,739, of whom 104,287 reside in the New Territories and in New Kowloon; at the Census taken in 1906 19 + it was 301,967 exclusive of the New Territories and of New Kowloon. The estimated total population at the middle of the year under review was 464,277, but this includes the New Territories; and, as the death figures given below do not include those from this area (with the exception of New Kowloon), the population for the purposes of calculating death-rates is estimated at 373,627, of whom 18,837 were non-Chinese. The distribution of the population at the Census was as follows:- Non-Chinese Civil Community City of Victoria (including Peak) 219,380 Villages of Hongkong 12,075 16.106 Chinese Kowloon (including New Kow- Population. loon)... 67,602 New Territories 80,622 Population afloat 60,948 414,661 456,739 Total Chinese Population...... Total Civil Population (b) PUBLIC HEALTH AND SANITATION, The gradual replacement of the old type of Chinese dwelling by the new premises erected in accordance with the Public Health and Buildings Ordinance 1903 is effecting a slow, but certain, im- provement in the healthiness of the native quarters; but this has been somewhat discounted during the past year, by an abnormal influx of Chinese refugees from the Canton district, which was coincident with the revolutionary movement in South China. It has been estimated that at least twenty thousand people arrived in Hongkong within a period of a few weeks during the months of April and May from this cause, and although some of these fugitives had no doubt returned to China before the close of the year, yet there is ample evidence that a sufficient number have remained to throw a consi- derable strain upon the housing accommodation of the Colony. A further, but smaller, influx due to similar causes occurred during the month of November. The chief sufferers from this cause would seem to be the Portuguese, who are largely employed as clerks, accountants, etc., in both Government and private offices. This section of the community has for some years past occupied dwellings of European type in the neighbourhood of Caine Road, Shelley Street, Mosque Terrace, etc., but they have recently been dispossessed by more wealthy Chinese tenants from Canton. At the same time the poorer classes of refugees have crowded into the native quarters of the City and of Kowloon, with the result that there has no doubt been some amount of overcrowding of a temporary nature. This has been dealt with, where it has been found that premises unfit for habitation-such for instance as basements-have been occupied, or where the overcrowding has been excessive; but it has been felt that the conditions were for the time being abnormal, and a rigid enforcement of the overcrowding laws has not been attempted. 20 There can be little doubt, moreover, that this influx of refugees has contributed largely to the increase in the number of cases of Plague and to the considerable outbreak of Small-pox, which occurred at the latter end of the year. The general death-rate for the year was 21 13 per 1,000 among the Chinese Community and 13:38 among the Non-Chinese Commu- nity, as compared with 22:50 and 10:04 during 1910. The number of deaths from malaria (338) is considerably lower than it had been for the previous five years, and Kowloon still main- tains the low average which it assumed on the completion of the railway works. The deaths from this cause in the City of Victoria numbered 176 out of a population of 218,000; but more than 26% of these deaths occurred in Health District No. 9, in close proximity to which extensive building operations have been in progress during the past year. The deaths from plague numbered 253, as compared with 23 in 1910, and 108 in 1909. All the cases of plague were Chinese with the exception of one Indian constable who died. Small-pox deaths numbered 198-all Chinese, with the exception of one British missionary lady who succumbed to the hæmorrhagic type of the disease; only ten of these were returned as having been previously vaccinated. There were 2,487 deaths from respiratory diseases among the Chinese, as compared with 2,603 in 1910. Phthisis claimed 753 Chinese victims, while other forms of tuberculosis represent an additional 426 deaths, making a total of 1,179 or 15'7% of the total deaths among that community. Beri-beri was responsible for 320 deaths, as compared with 566 during 1910, and 555 in 1909. During the past year circulars have been distributed to all large employers of coolie labour calling their attention to the fact that beri-beri is produced by the consumption of white rice as the staple article of diet without a sufficiency of other foods, and advising that beans should be supplied with the rice, when fresh meat or fresh fish connot be afforded, and it is pos- sible that the dissemination of this information may have had some influence in reducing the mortality from this disease. (c.) CLIMATE. The average monthly temperature throughout the year was 72.1° F. as compared with 72·0° F. in 1910 and an average of 72·1° F. during the ten preceding years. The maximum mean monthly temperature was attained in June, when it reached 87-2° F., and the mean minimum monthly temperature was recorded in January, when it was 555° F. The highest recorded temperature during the year was 93·1 F. on the 25th August, and the lowest 47·1° F. on the 24th February. * These are the temperatures recorded by the Observatory at sea-level. The temperature in the high levels at the Peak averages some 10o less. 21 The total rainfall for the year was 90'55 inches, as compared with an average of 8073 inches, during the ten preceding years. The wettest month was August with 30'06 inches, the dryest, Fe- bruary, when no rain was recorded. The greatest amount of rain which fell on any one day was 8'61 inches on the 5th August, while no rain fell on 220 days of the year. The mean relative humidity of the atmosphere for the year was 79 %, as compared with an average of 77% during the ten preceding years. The average daily amount of sunshine was 5'7 hours, being 50% of the possible duration. These figures are those recorded at the Observatory, Kowloon, and there is a very considerable divergence between that place and Hongkong (low levels), the Peak District, or Tai Po (New Territories), both in rainfall, temperature and humidity. X.-POSTAL SERVICE. The total revenue from the postal service in 1911 was $399,217.15 and total expenditure $422,267.97. The result of the year's working shows a deficit of $23,050.82. Direct exchange of money orders with the Philippine Islands commenced on 1st July, and a revised parcel arrangement with Siam came into operation on 26th September. XI.-MILITARY EXPENDITURE. (a.) COLONIAL CONTRIBUTION. The Colony contributed $1,342,554 (being the statutory con- tribution of 20% of the Revenue) towards the cost of the mainten- ance of the Regular Forces in the Colony including Barrack Services and Defence Works. (b.) VOLUNTEER CORPS. The expenditure on the Volunteers, which is entirely born by the Colony, was $49,311 compared with $34,744 in 1910. XII--GENERAL OBSERVATIONS. During the past year no general assessment was made. The existing valuation for 1910-11 was ordered to be adopted as the valuation for 1911-12, the difference in rateable value being the result of interim assessments. There is an increase in the rateable value of the whole Colony of 071%. In the City of Victoria, the Hill District, Shaukiwan, Saiwanho, Quarry Bay, Hongkong Villages, Kowloon Point, Yaumati, Mongkoktsui, and New Kowloon there is an increase ranging from 10:59 to 0.29%, the largest increase being in New Kowloon. There is no change in Hunghom and Hokun. Kowloon Villages show a decrease of 1·76%. The average rate of exchange (demand on London) which had been 1/9 6021 to the dollar for 1910 rose to 1/9-754808 for 1911. 22 The position with regard to subsidiary coins still remained unsatisfactory. The discount during the year on Hongkong silver subsidiary coin varied between 3% on 50 cent pieces and 7% on 10 cent pieces, that on Hongkong copper cents varied from 9 to 12%. The loss on such coin collected as Revenue came to $49,434.96. His Majesty's Government made the Colony a grant of £12,000 for the year 1911-12 on account of an estimated loss of $225,860 incurred during that year in respect of opium revenue. By the agreement of the 8th May, 1911 between Great Britain. and China, no Indian opium can be imported into China, unless accompanied by a certificate issued by the Indian Government that such opium has been exported from India for consumption in China. To prevent attempts to smuggle non-certificated Indian opium from Hongkong into China, an Ordinance was passed on 1st September, 1911, prohibiting the import of non-certificated Indian opium into Hongkong except for the use of the Hongkong Opium Farmer. The In August, 1911, the port of Macao was added to the list of places to which the export of morphine and compounds of opium is not permitted except on production of an official certificate from the country concerned that such import is for legitimate purposes. import of morphine and compounds of opium for export practically ceased towards the end of the year, and considerable quantities lying in Hongkong were shipped back to London. The 22nd June, being the day fixed for the Coronation of His Majesty King George V, was observed as a holiday and the whole of the population joined in celebrating the occasion. A review of the troops was held, at which about 3,500 soldiers and sailors paraded. A short service was held by the Chaplain and cheers were raised for His Majesty. Subsequently the troops marched through the prin- cipal streets of the City. The European, Chinese and Indian Com- munities all combined to show their loyalty and devotion. Services were held in the Protestant and Roman Catholic Cathedrals and other churches. The Parsee and Sikh Communities also held special services. The children of the Colony were entertained and were addressed by Sir F. D. Lugard, and sports of all kinds were arranged for them. The whole of the Colony was illuminated for three nights, all the men-of-war in harbour of whatever nationality combining in the display. A reception and fête was held at Government House in the evening, at which practically the whole of the European population and many Chinese and Indians attended. In July, 1910, the audit of the Colony's Expenditure was trans- ferred from the Director of Colonial Audit and has since been carried out by the Local Auditor. The new arrangement has proved very satisfactory and the additional staff required has been very small, viz., one fourth grade and one fifth grade clerk. 23 In December, 1910, Mr. R. E. Stubbs of the Colonial Office visited this Colony with a view to ascertaining the conditions of service in Hongkong; and, as the result of his inquiries, it was decided that that the salaries of Cadets and some other officers should be increased by the grant of a non-pensionable duty allowance". This allowance is only payable to an officer when he is actually performing the duties of a post to which duty-pay is assigned. The preparation of a revised edition of the Ordinances of Hong- kong to the end of the year 1911 was considered necessary, and the revision was entrusted to the Chief Justice, Sir F. T. Piggott, who commenced work in March 1911. At the close of the year the revision work was still in progress. On the 7th September, 1911, a Board of Chinese Vernacular Primary Education was constituted by the Governor-in-Council with the following duties:- (1.) to promote efficient Chinese Vernacular Education in the Colony; (2.) to collect funds to supplement a Government subsidy made to the Board. The Board consists of the Registrar General and the Director of Education (ex-officio) and of five Chinese gentlemen nominated by the Governor. The Government subsidy to the Board for the year 1912 will be $4,100.00, which the Board intend to distribute after a survey of the general situation and after inspection in the month of December of schools selected from the list of applicants for assist- ance. The Board is giving attention in the first instance to boys' schools in the City of Victoria and other parts of the old Colony. Its operations do not extend to the New Territories. Girls' schools are, also, for the present not placed under the supervision of the Board. The The Grant Code was amended in September in certain par- ticulars. The amendments, which took effect on the 1st January, 1912, reduced the rates of capitation grants for such Vernacular Schools as are without immediate English supervision. practice of giving grants in aid of rent to vernacular boys' schools. occupying leased premises is being discontinued. The reason for this restriction of expenditure is that the grant hitherto offered to vernacular schools was too high for the standard of work attained. On 4th October the Chinese Section of the Kowloon-Canton Railway was opened for through traffic, thus completing direct com- munication by rail between Kowloon and Canton. The revolutionary movement in China was reflected in the Colony on 6th November by an ebullition among the Chinese com- munity, which for some days was in a state of great excitement. A proclamation under the Peace Preservation Ordinance 1886, as amend- ed by Ordinance No. 52 of 1911, was issued on 29th November and was still in force at the end of the year. It was also found necessary 24 J to introduce the use of the "cat" under the Flogging Amendment Ordinance No. 12 of 1911. This punishment was awarded in 29 cases during December. The Police succeeded in preventing any serious outbreak of lawlessness, though the influx of undesirable characters from Canton and other parts of China was disagreeably apparent and many cases of disorderliness, assaults and petty thieving were reported. Military assistance was provided in the form of armed patrols, and the Police Force was temporarily augmented by enlisting 20 special constables. On 21st January, Sir Henry May vacated the office of Colonial Secretary to take up the office of Governor of Fiji and High Com- missioner for the Southern Pacific. His place was filled by the appointment of Mr. W. D. Barnes from the Federated Malay States Service, whose untimely death on the 28th October again rendered the Colonial Secretaryship vacant. Mr. Claud Severn of the Federated Malay States Service was subsequently appointed, but did not assume his duties during the year. Mr. C. Clementi was in charge of the Colonial Secretary's Department from 22nd January to 21st February, and acted as Colonial Secretary from 22nd February to 6th June and again from 29th November to the end of the year under review. Mr. Brewin acted from 30th October to 28th November. His Excellency C. CLEMENTI, Colonial Secretary. The Officer Administering the Government. Appendix A. FINANCIAL RETURNS FOR THE YEAR 1911. Comparative Statement of the Revenue and Expenditure for the period ended 31st December, 1911. HEADS OF REVENUE. Estimates, 1911. Actual Revenue to Revenue for same 31st Dec., 1911. period of preceding Year. Increase. Decrease. 3 3 $ Light Dues ... 85,000.00 $2,$78.09 86,157.30 Licences and Internal Revenue not otherwise specified 4.769,876.00 4,792,952,404,520,427.99 272,524.41 Fees of Court or Office, Payments for specific purposes, and Reimbursements in Aid 562,675.00 605.745-95 604,901.38 844-57 EXPENDITURE. Estimates, 1910. Actual Expenditure to 31st Dec., 1911. Expenditure for same period of preceding Year. Increase. Decrease. 3.579.11 Governor $ 84,714.00 85,887.75 83.434-15 $ 2,453.60 Colonial Secretary's Department and Legislature ... 76,199.00 65,628.57 64,841.55 787.02 Registrar General's Department... Audit Department .. 44,540.00 49,217,74 42,636.46 6,581.29 31,623.00 28,703.10 29,426.18 723.08 Post Office 403,100.00 399.217.15 $19,066.54 119.849.39 Treasury ... 61,729.00 64.392.16 59.767.93 4,624.35 Harbour Master's Department 228,373.00 218,269.51 224.419.51 6,150.00 Rent of Government Property, Land and Houses 829,420.00 841,239-15 832,382.20 $,856.95 Harbour Office, Special Expenditure 32,500.00 14,872.11 14,872.11 Interest 4,000.00 9,621.67 3,999.81 5,621.86 Observatory 22,951.00 23,353.02 21,787-55 1,565.47 Miscellaneous Services... 152,407.00 186,291 29 269,687.32 Miscellaneous Receipts 59,81 2.00 67,871.00 61,248.07 6,622-93 83,396.03 Judicial and Legal Departments... 245.717.00 234,685.00 233,678.53 1,006.47 *** Law Officers, Special Expenditure 2.543.00 2,320.01 2,320.01 TOTAL,... 6,713,883.00 | 6,799,235-41 | 6,628, 183-19 294,470.72 123,438.50 Police and Prison Departments ... 750,489.00 724,088,00 721,698.01 2,389.99 Fire Brigade, Special Expenditure $,000.00 Widows' and Orphans' Pension Fund and Contributions... 42,500.00 44.50.11 42,451.99 2,039.12 Balance of Nursing Sisters' Quarters Fund. Medical Departments 239,838.00 223,442.17 217,604.53 7,837.64 6,814.20 6,814.20 Sanitary Department 353,880.00 339.788.07 338.445.28 1,342.79 Do, - 1 Light Dues, Special Assessment 96,000.00 92,802.14 95,810.83 3,008.69 Special Expenditure Botanical and Forestry Department .. 20,000.00 48,041.00 10,000 00 45,628 52 10,000.00 41,707.95 3,920-57 Education 264,337.00 237,942-35 225,605.56 12,336.79 Half estimated loss on working of Postal Agencies in China 27,000 00 2,998.37 2,998.37 • Military Expenditure 1,392,587.00 1,390,568.66 | 1,407,231.03 16,662.37 Imperial Contribution on account Opium Revenue *33.953-49 99.310.34 34,643-15 Public Works Department ... Do. Recurrent Kowloon-Canton Railway 107,000.00 153,735.12 25,512.74 128,122.38 Do. Extraordinary Post Office 352,455.00 308,408.12 309,784.71 416,200.00 486,940.80 429,835.24 1,080,400.00 807,181.09 1,204,823.53 456,897.00 422,267.97 470,984.35 1,376.59 57,105 56 397,642.44 48,716.38 Land Sales, (Premia on New Leases) 100,000.00 270,005.59 62,685.99 207,319.60 Kowloon-Canton Railway Charge on account of Public Debt Pensions ... Charitable Services TOTAL, |7,085,383.00 |7,497,231.23 | 5,960,869.28 | 669,513-34 133.251.39 TOTAL, 511,276.00 561,637.17 73.574.33 488,062.84 241,577.00 256,975.32 172,036.18 84.939.14 254,709.00 267,911.13 347,165.87 20,745.26 24,332.00 18,777.60 16,937.57 1,839.93 7.385,320.00 7,077,177.23 | 6,907,113.40 724,730.72 554,666.89 A ? S'atement of Assets and Liabilities on the 31st December, 1911. LIABILITIES. ASSETS. Deposits not Available, Crown Agents' Advances, 245,552.66 Balance, Bank, 166,685.55 8,657,902.04 Subsidiary Coins,. 298,424.00 Postal Agencios in China, 76,203.96 Advances, 27,895.91 House Service, 1,170.71 Railway Construction,................ 5,053,279.45 Unallocated Stores, 237,041.53 Totul Liabilities, Balance, 8,979,660.66 1,826,978.96 Crown Agents' Current Account, 22,142.47 Total,............ 5,806,639.62 | Totul,............ $5,806,639.62 Statement of Funded Public Debt or Loans borrowed for Fixed Periods outstanding on the 31st December, 1911, and of the Accumulated Sinking Fund at the same date. JOINT SINKING FUND 1911. Designation of Debt or Loan. Legal Authority. Amount Outstanding. Amount of Stock, &c. Cost Price. Market Value. · Hongkong 84% In- scribed Ntock. Ordinances Nos. | £1,485,782.16.6 1 & 2 of 1893 Sterling. and No. 11 of 1905. British Guiana, 3 % Stock. Cape of G. Hope, 3 % Ceylon, Gold Const, Do., Natal, £ a. d. 2,000. 0, 0 2,000. 0. 0 81% 6,000, 0, 0 ** # % 5,000, 0, 0 11 12,022. 9. 1 * New Zealand, 3 % 3% 11 • Queensland, 3 % " Sierra Leone, South Australia, 31% 31% 1 Bonth Nigeria (Lagos), Birkila Settlement894% Trinidad, Do., Victoria, Western A'tralia, 8'0' Indin, Total, 1911, 91% 8% 17 310 200. 0. 0 2,000, 0, 0 2,000. 0, 0 4,000. 0. 0 1,200. 0, 0 31,437. 3.11 32.862. 1. * 4,000, 0, 0 ! 3,600, 0, 0 5,000. 0. 0 2,100. 0, U O . 3,982.13. 1 F F £ .. d. 1,932.17. 8 1,941. 1.10 a. d. 86 ) 1,720. 0, 0 87) 1,740, N, O 4,900.11. 9 ( 98 ) 4,900, 0, 0 4,480.11. 6 }( 86 ) 4,800, 0, 0 11,586. 2. 2 | 96|711,601,13. 5 189.19. 5 (8T) 170. 0. 0 1,921. 8. 8 ( 87 ) 1,740, 0, 0 1,948, 8.10 ( 83 ) 1,700), U, O 3,879.19. 2 |( 96 ) 3,840, 0, 0 1,293,16, 5 ( 97 ) 1,164, 0. V 33,067.19. 7 ( 96 )38,659.14, 2 31,252.15, 8 |( 97 )31,876, 4. 0 4,082,12, o |(102) 4,080, 0, 0 3,25x. 7, 0 ( 84 ) 4 704. 0, 0 4,734. R. 6 ( 97 ) 4,850, 0, IN 2,010. 3. 1 ( 87 ) 1,827, 0, 0 3,786 13. 6 94) 3,743.18 7 £123,404.12. 4 |£118,267, 6, 6 £117,016,10, 2 Muchany Loan-Assouni-1914, Repayments by Viceroy, (advanced for Railway Con- struction), Balance due to dovermnent, Loan, £660,000 44000 Totul... 41,100,000 £1,100,000 Total, £1,100,000 Statement of the Expenditure on Works and Payments Chargeable to Loan Accounts, Expenditure on Railway Construction from special fund and various advances ultimately re- payable from the lund up to 31st December, 1910, During 1911, $11,884,427.76 187,075.01 $12,021,502,77 Advances from Loan Fund, £600,000,... Do. General Account, 29th February, 1912. 26,968,223 32 6,059,279.45 $12,021,602,77 A. M. THOMSON, Treasurer. Appendix A (1). REPORT ON THE FINANCES FOR 1911. REVENUE. The total Revenue for the year amounted to $7,497,231 being $410,848 in excess of the Estimate and $536,362 in excess of the Revenue for 1910.